BAKU, Azerbaijan, August 11. Afghanistan's Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar Akhund called for an agreement on gas pricing under the TAPI project.
This was reported in a publication by the Office of the Prime Minister of Afghanistan.
Baradar called on Afghanistan and Turkmenistan to reach an agreement on gas pricing and revise the pricing formula to limit the impact of severe fluctuations in European markets on gas prices.
“The agreement should be concluded for the long term, contain simplified conditions, and include a flexible mechanism for reviewing the agreement,” the publication said.
For reference, international gas trade uses several pricing models. Historically, long-term pipeline contracts often linked gas prices to oil or oil products. The European market, however, has increasingly shifted toward hub-based pricing, with the Netherlands' Title Transfer Facility (TTF) becoming a key benchmark. The European Commission notes that TTF is used as an index in a wide range of gas contracts.
This is particularly relevant for TAPI. In 2012, India said the agreed price for Turkmen gas under TAPI was expected to be calculated using a formula based on several indices, including a fuel basket and other indicators, following international contract practices. This means that the TAPI price does not necessarily have to track a single exchange benchmark and can instead incorporate several market indicators, coefficients and price-review periods.
Baradar's reference to European markets appear to be relevant because Europe's gas prices have become more sensitive to global LNG markets following the decline in Russian pipeline supplies. TTF is increasingly influenced by global LNG demand, supply availability, shipping costs and geopolitical risks. In 2026, uncertainty over LNG flows through the Strait of Hormuz and the conflict involving Iran contributed to sharp price movements, while TTF also moved alongside Asia's JKM benchmark.
For Afghanistan, this creates a commercial concern because the country is both a TAPI transit state and a gas buyer, with about 5% of the planned 33 billion cubic meters annual capacity allocated to Afghanistan. Baradar's call for a long-term agreement with simplified conditions and a flexible review mechanism suggests Kabul wants to limit the impact of short-term external price shocks while retaining the ability to adjust the pricing formula as market conditions change.
